Government adopts measures to boost employment - One year without taxes and social security contributions for new employees

Employers in Serbia will be exempted from taxes on salaries and pension and disability insurance taxes for new employees under 30 or above 45 years of age over the period of one year, the Serbian government decided on Thursday.

For all other newly employed people, employers will not be paying social security contributions and 30 percent of the calculated tax on salary.

Cvetkovic said at a press conference held after the government session that these measures should reduce expenditures of employers from the private sector in order to boost employment.

Measures include exemptions for employers who hire new employees or move those working in the informal economy into legal channels. They also apply to the private sector, or companies in which at least 50% of the capital is private.

Vlada Republike Srbije

Payroll tax

pension

disability insurance

social security

Mirko Cvetkovic